Sec. 201. Limitations on post-acquisition dividends, distributions, redemptions, and buybacks
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No target firm may, during the 2-year period beginning on the closing date of a change in control transaction that results in control of the target firm by a private fund— make a capital distribution or similarly reduce the equity capital of the target firm; or incur an obligation that commits the target firm to making a capital distribution or a similar reduction of the equity capital of the target firm after the end of that 2-year period. Any transfer made or obligation incurred by a target firm or an affiliate with respect to a target firm in violation of subsection
(a)shall be void. Any control person that is a private fund, any holder of an economic interest in a control person that is a private fund, or any affiliate of a target firm that aids, abets, facilitates, supports, or instructs any violation of subsection
(a)shall be jointly and severally liable under this subsection for any transfer made or obligation incurred, including for reasonable attorney’s fees and costs awarded to a plaintiff under subsection (d)(2). Any employee or creditor, or representative of an employee or creditor, of a target firm that is a debtor under title 11, United States Code, or of an affiliate of a target firm that is such a debtor, may bring an action in an appropriate district court of the United States against the direct or indirect transferee or obligee or beneficiary of the transfer or obligation to void the transfer or obligation and recover any transferred property for the target firm. In a successful action to recover a transfer, the court shall also award the plaintiff reasonable attorney’s fees and costs.